Apex Service Partners to receive minority investment at $10 billion valuation 

Residential HVAC, plumbing, and electrical platform Apex Service Partners is set to receive a minority investment from asset management giant Apollo, the company announced Thursday. 

What’s happening: The transaction values Apex at $10 billion, according to a person with knowledge of the matter, who spoke on the condition of anonymity as the financial terms are confidential. 

• Apollo will invest $2 billion, the Wall Street Journal reported, while Apex’s founding sponsor, Alpine Investors, will make an additional investment, according to Thursday’s news release. 
• Goldman Sachs and Evercore advised on the deal. A representative for Apex declined to comment, and Apollo didn’t return a request for comment. 

Zoom out: Founded in 2019 with backing from California-based Alpine Investors, Apex is the largest private equity-backed residential HVAC, plumbing, and electrical platform in the U.S.

• The company generates “over” $500 million of EBITDA, according to a person familiar with the company, on more than $3 billion of annual revenue, per the news release. 
• In late 2023, Alpine completed a $3.4 billion secondary market transaction solely to fund Apex’s continued growth. 
• Apex operates 75 local contracting brands across 46 U.S. states and counts more than 13,000 employees. 

What they’re saying: “The investment will support Apex’s next phase of growth as the company continues to expand its national footprint, deepen its multi-trade service offerings and advance the technology and talent infrastructure that underpin its operating model,” the news release states. 

The big picture: The deal — expected to close in the fourth quarter — follows a string of private equity-backed platform activity over the past year, including Redwood Services’ majority investment from Altas Partners, Blackstone’s $2.5 billion acquisition of Champions Group, and the reported sale processes of American Residential Services (ARS) and USA Hometown Experts.

Editor’s note: This story has been updated to reflect an announcement from Apex Service Partners.